BP has joined forces with Japan’s power giant JERA to launch a major offshore wind venture. This partnership reduces BP’s direct spending on renewables while expanding its role in green energy.

$5.8 Billion Investment Toward Offshore Wind Projects

BP and JERA will each invest up to $5.8 billion (€5.51 billion) by 2030, with BP contributing $3.25 billion (€3.09 billion). This reflects a change from BP’s earlier plan to invest $10 billion (€9.5 billion) in renewable energy by 2030.

BP’s CEO Murray Auchincloss called the venture a balanced approach to growth. “This partnership allows us to expand efficiently into a world powered by electricity while staying capital-light for shareholders,” he stated.

Global Wind Assets and Initial Focus Areas

The new company, JERA Nex bp, will combine both firms’ offshore wind projects, totaling a potential capacity of 13GW.

JERA has wind farms in Belgium, Germany, Japan, and Taiwan and projects in development in Ireland, Japan, and Australia. BP operates wind projects in the UK’s Irish Sea, Germany’s North Sea, Scotland, and off the US East Coast. The joint venture will initially target projects in North-West Europe, Japan, and Australia.

A Strategic Shift in BP’s Green Ambitions

BP’s decision reflects a strategic shift under new CEO Murray Auchincloss. After former CEO Bernard Looney resigned in September and BP’s share price dropped by 15%, Auchincloss has scaled back the company’s renewable targets to regain investor confidence.

Other oil giants are making similar moves. Shell has paused new offshore wind projects, and Equinor is reducing staff in its renewables division.

This joint venture helps BP balance its green energy goals with financial stability, marking a cautious yet strategic step forward in the energy transition.